Melilla’s New Grant Opportunities for Startups and Digital Projects
Melilla, a vibrant autonomous city in Spain, has recently unveiled an exciting call for non-repayable grants aimed at fostering innovation and entrepreneurship. This initiative is particularly significant for startups, digital companies, and technology-driven business models looking to establish or expand their operations in the region. With a focus on the gaming sector, this measure enhances Melilla’s already attractive tax ecosystem, positioning it as a competitive territory for digital and online gaming-related enterprises.
Overview of the Grant Program
Published in the Official Gazette of the Autonomous City of Melilla, the grant program is designed to promote and consolidate emerging digital companies throughout the 2026 financial year. The initiative is structured into two distinct lines:
- Line 1: Targeted at early-stage or newly established projects with a technological or digital foundation.
- Line 2: Aimed at startups that are looking to consolidate and scale their operations.
Grant Details
Line 1 offers grants ranging from €3,000 to €6,000, covering 100% of the approved eligible budget. This line is particularly beneficial for new projects that require initial funding to get off the ground. The maximum eligible budget per project in this line is capped at €6,000.
Line 2, on the other hand, is designed for startups with a proven track record. Grants in this category range from a minimum of €15,000 to a maximum of €57,000, covering up to 85% of the approved eligible budget. The non-repayable nature of these grants makes them especially appealing for digital projects that need investment in various areas, including technology, staffing, product development, marketing, and market expansion.
Application Flexibility
One of the most attractive features of this grant call is the flexibility it offers to applicants. Companies do not need to be established in Melilla at the time of application. Instead, those without a tax domicile or permanent establishment in the city can submit a declaration of intent to establish themselves. If awarded the grant, they will have one month from notification to prove their establishment in Melilla.
Advance Payments and Budget Allocation
The program also includes a 60% advance payment option, which can be granted without the need for guarantees after submitting documentation that proves the start of activity and, if applicable, establishment in Melilla. The remaining 40% will be disbursed upon proper justification, in accordance with the regulatory conditions.
The initial budget for this grant program amounts to €400,000, with €54,000 allocated for Line 1 and €346,000 for Line 2. There is also the potential for an additional conditional budget of up to €1 million. The first application window is open until May 31, 2026, with a second window scheduled from September 1 to October 1, 2026, subject to the availability of additional funds.
Tax Advantages for Online Gaming Companies
For companies in the online gaming sector, Melilla offers more than just grants. The region benefits from a special tax regime, which includes a 50% reduction in Corporate Income Tax on income generated within its territories. Additionally, the traditional VAT is replaced by the IPSI tax, further enhancing the financial appeal for businesses.
Emerging companies in Melilla are also taxed at a reduced rate of 15% in Corporate Income Tax during their first profitable tax period and the subsequent three years, provided they maintain their startup status. This combination of tax incentives creates a highly competitive fiscal environment for technology projects.
Evaluation Criteria
The grant call evaluates various aspects closely linked to advanced digital models. Key evaluation criteria include:
- Technological innovation
- Digital integration
- Business planning and scalability
- Creation of skilled employment in Melilla
- Competitiveness
- Potential to drive the local ecosystem
These criteria ensure that the selected projects not only have the potential for growth but also contribute positively to the local economy.
A Hub for Diverse Digital Enterprises
Melilla is positioning itself as a prime location for a wide range of digital enterprises. From online gaming companies to those focused on artificial intelligence, data analytics, cybersecurity, and more, the city is becoming increasingly attractive for businesses looking to thrive in a supportive environment.
With its unique blend of financial incentives, flexible application processes, and a commitment to fostering innovation, Melilla is emerging as a noteworthy destination for startups and technology-driven projects.
